In an effort to save Louisiana’s film industry, producers are planning a lawsuit over the new tax limits.
According to WWLTV, the Louisiana Film Entertainment Association (LFEA) is preparing to challenge the constitutionality of the film tax credit cap.
“We would very much like to see the constitutional challenge proceed as quickly as possible and resolve as quickly as possible, so we can resume the process of having those companies send their projects to Louisiana,” LFEA President Will French said.
State Rep. Walt Leger, D-New Orleans, agrees there may be a problem with the new law, approved in the closing minutes of the recent legislative session.
“What is does is tell somebody in any given tax year, that the (film tax credits) may be worth what the state says it’s worth or we may not take it at all, and they’ll have to come back next year and try to use it,” Leger said. “I think when you take something of value and either diminish that value or deplete that value entirely without adequate compensation, you are doing something that unlawful.”
Gov. Bobby Jindal signed a bill last Friday placing a cap on the film industry tax credit that major movie producers strongly urged the governor to veto.
According to Nola.com, Jindal’s office announced the governor signed the bill into law, which basically kills thousands of jobs.
By putting per film tax credit limit, this will close the door to the number of high profile movies such as “Jurassic World” – which filmed in New Orleans, Louisiana late last year. It is expected that 13,000 people will lose their job.